April was one of the worst months for the markets since the start of the pandemic.U.S. markets were down between 5 percent for the Dow and 14 percent for the Nasdaq, while international markets fell between 5 percent and 7 percent. Rising interest rates drove the declines, with the Fed signaling it intended to keep tightening monetary policy. Still, the U.S. economic news was positive. Hiring remained strong, supporting consumer confidence, and business confidence and investment remained healthy.
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Monday Update: Economy Contracts in the First Quarter
Last week was a busy period for economic updates, with several important data releases that covered wide areas of the economy. The advanced estimate for first-quarter GDP growth showed that the economy surprisingly contracted to start the year, but the underlying data had some positive signs for growth ahead. This will be another busy week of updates, with highlights including business confidence, international trade, the results from the Fed’s May meeting, and the April employment report.
Is the Economy Shrinking?
Chalk another point up on the board for the importance of context. Yesterday’s economic data release showed that the economy actually shrank in the last quarter, down by 1.4 percent at an annual rate. This result was down from 6.9 percent in the prior quarter and well below the expected 1 percent growth rate.
The 100K Project: Takeaways for Investors
This will be the last post on the 100K project because I finished it a couple of days ago, 364 days after I started. For those coming in fresh, the 100K project was a decision I made, 364 days ago, to start tracking my daily calorie balance—consumed less burned—over time. The goal was to get a net loss of 100,000 calories down, over an indefinite time period. You could think of it as taking 100,000 calories out of the fat bank.
Putting Market Declines in Perspective
Following up on yesterday’s post about the recent market declines, I thought it would make sense to talk not just about the declines themselves (where they came from and where they are going), but also about what the declines mean from a larger portfolio perspective. To take the emotion out of it for a bit, and see what the larger picture can tell us.
Why Is the Market Going Down?
The economy seems to be doing well, with job growth still at high levels, consumer spending still healthy, and businesses continuing to invest. But the stock market—which is supposedly a barometer of that economy—is acting very differently. The market has fallen significantly from its peak at the start of the year and, more recently, has taken a sharper drop. What’s going on here, and will it continue?
Director of Operations
Ashley has been working in the customer service field since she started her first job at age 16. For the past ten years she worked in an office setting handling accounts payable and receivable as well as some receptionist work. She is very excited to learn more about the investment field.
Alec joined Riverstone after starting out his post college career on the operations side of an international logistics company working as an account executive. Graduating with a BA in Economics from the University of Illinois at Urbana-Champaign, he quickly developed a strong interest in the financial world. A lifetime resident of the Chicagoland area, Alec is an avid fan of his hometown sports teams. He is also an enthusiast of outdoor activities like fishing, camping, and hiking whenever possible.
Carol has a wide variety of experiences and has worked mainly with not-for-profit organizations. She spent 20 years in fundraising and 15 years teaching in the Illinois school system while she raised her younger children. Carol lives in Sugar Grove with her husband, Ron, and their Golden Retriever, Charley. She has four children and two grandchildren. When she’s not working, Carol enjoys spending time with friends and family, running, fishing, bible study, and watching her grandchildren play sports.
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Wealth Advisor / Registered Principal
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Wealth Advisor / Registered Principal
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